Euronext Surpasses Expectations with Strong Double-Digit Growth
By Jakob Van Calster and Mateusz Rabiega
(Reuters) -Euronext on Thursday reported quarterly results that beat consensus as continued market volatility spurred trading volumes and investors flocked to Europe seeing the bloc's relative stability as a safe haven.
Revenues hit a fresh record of 465.8 million euros ($531.7 million) with the group's net profit clocking in at 183.8 million euros ($210.3 million), an almost 30% increase year-on-year and above the figure of 172.7 million euros analysts had expected in a company provided consensus.
Euronext CEO Stéphane Boujnah said he did not see market volatility subsiding any time soon.
"It sounds like we have to accept that the volatility of decision-making is the new normal," he said in an interview.
He did not expect the EU-Trump tariff deal to subdue volatility, pointing to asymmetries in sectors profiting from the scheme, the services deficit of the EU with the USA, and the fact member states still have to ratify the deal.
Whilst market volatility aided trading volumes, it hampered IPO listings which fell from 14 to 6 year-on-year in another setback for the pan-European stock exchange which continues to struggle to attract new European listings.
"When markets are too volatile, boats don't leave the harbour," Boujnah said.
Euronext, which manages exchanges in Amsterdam, Brussels, Dublin, Lisbon, Milan, Oslo, and Paris, has been making overtures to other European operators in an effort to consolidate what former ECB frontman Mario Draghi, amongst others, has branded an overly fragmented market.
This morning, the company announced it had launched a voluntary share offerfor the Athenian stock exchange worth 412.8 million euros.
Boujnah reiterated his long term commitment towards a single integrated market.
"Together, we can build market infrastructure much stronger than what we could ever do at the local level. Liquidity and scale is the name of the game."
($1 = 0.8760 euros)
(Reporting by Jakob Van Calster and Mateusz Rabiega; Editing by Matt Scuffham)
